Change, even if it’s not met with positive feedback, is necessary. More than a few organizations have gone out of business because they failed to accept change or see the need for it. In the change management process, there will be certain signs that tell business owners when change is necessary, they include:

Increasing Frequency of Service Delays or Project Failures

This is one of the biggest hallmarks that there is a need for business transformation. When an increase in the frequency or service delays and project failures is observed, it is time to take a good look at the business process, pick out the weak points, and do something about it.

Observed Understaffing or Overstaffing

Many companies find themselves understaffed and as a result, they experience a drop in productivity levels and in employee satisfaction. This can lead to a decrease in service and product quality, which leads to losses for the company.

On the flip side, some companies realize that they have more people than they need. This creates waste and an unnecessary allocation of funds. It can also lead to employee dissatisfaction as many feel that they are not being used to their full potential.

Presence of Out of Date Equipment and Machinery

This is a common reason why companies go for organizational change. It is especially true for factories that rely on complex machinery. Technological improvements may require a downsizing in workforce, but it can be necessary to improve production and increase profit.

Once it is determined that change is necessary, it is important to apply proper change management techniques. Doing so will not only make managing organizational change easier, it can also help preserve the relationship between company and its employees.

Markets are continually changing. Demands may rise and fall and from time to time, upgrades and required. It could spell disaster if a company fails to recognize and pay attention to the above signs.